Business Politics

‘Krom ay3she’, scrap taxes on fuel – NDC to Akufo-Addo

The opposition National Democratic Congress (NDC) has demanded the immediate removal of all taxes imposed on petroleum products since the New Patriotic Party (NPP) administration assumed office.

The NDC argued that the 60% increase in revenue from the country’s oil sector makes it untenable for government to maintain the taxes still.

Communications Officer for the party, Sammy Gyamfi, addressing the media on the recent hikes in fuel prices, observed that despite about a 45% increase in fuel prices this year alone, only 4% has been handed over to the public sector workers.

This situation, he believed, will bring hardship on the ordinary Ghanaian.

Mr Gyamfi added that “the high and unbearable cost of living that Ghanaians are experiencing under the watch of President Akufo-Addo and Vice President Dr Bawumia, which has largely been occasioned by steep increases in the prices of the Petroleum products over the last four and half years.”

He also explained that the government has increased fuel prices by nine consecutive times in 2021 alone; as a result, the prices of diesel and petrol for a gallon has increased from “about ¢21 as of January this year, to about ¢31 currently.”

He, therefore, highlighted four levies that must be scraped.

Calling on President Akufo-Addo, he outlined;

“Scrap the Special Petroleum Tax (SPT) of 46 pesewas on a liter of diesel and petrol. It will be recalled that the SPT was introduced by the erstwhile NDC/Mahama administration sometime in 2016 when crude oil export price fell far below government’s budgetary projections. The objective was to shore up government’s revenue for development purposes. But given the fact that crude oil export price has increased from below $40 to above $80 per barrel currently, far above the government’s budgetary projection of $54.75 per barrel, it is untenable for government to still maintain the SPT on the price of petroleum products now, and same should be scrapped immediately. This is particularly so, when government’s revenue from the oil sector for the second quarter of this year 2021, went up by almost 60%, equivalent to US$89.1 million, as compared to oil revenue for the same period in the previous year.
In the same vain, we call on government to scrap the newly introduced taxes on fuel products such as the Energy Sector Levies of 20 pesewas on a liter of diesel and petrol and
The new sanitation levy (“Borla” tax) of 10 pesewas on a liter of diesel and petrol, as same is totally needless and useless.
We also demand that the new increase of 18 pesewas on a kilogram of LPG must be scrapped.
And finally, we wish to call on government to consider the review of other existing taxes on fuel products in line with proposals submitted to the Ministry of Finance and Energy by the Chamber of Petroleum Consumers (COPEC) and other stakeholders in the downstream petroleum sector.”
The press conference also touched on the general socioeconomic hardships facing many Ghanaians and referenced price comparisons in the construction industry.

Mr Gyamfi said, “Prices of building materials reveals a very worrying trend that is of major concern to many Ghanaians. For example, a 50kg bag of cement sold at ¢27 in 2016 is being sold at ¢52 and in some cases above this price today.

“A tonne of iron rods (16mm) sold at about ¢2,800 in 2016 is today going for ¢5,300, while a packet of aluminium roofing sheet that was sold at about ¢520 in 2016 is being sold at about ¢1,200 today.

“Similarly, PVC pipes (20mm) that used to sell at about ¢3 in 2016 is today being sold at GHS8.00. Electrical Cables (Cable metal – 16mm) that used to sell at ¢700 in 2016 is today selling at ¢1,553 while the 1.5mm Cable metal, which used to sell at ¢78 is today selling at ¢167.”

Source: myjoyonline.com

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